The Association is considering its budget for the financial year 2024 / 2025, and as part of this process, is consulting with tenants on what level of rent increase should be applied from 1 April 2024.
The Association is a charity which exists to provide good quality homes as affordable rents. The Association therefore always aims to keep rent levels as affordable as possible and understands the importance of finding the right balance between rent affordability and the need to deliver services and ensure continued investment in properties.
The last two years have seen inflation rise significantly which in turn has resulted in a marked increase in both reactive repair costs and planned maintenance / property investment costs.
In addition to rising repair costs, the Scottish Government has introduced new requirements in respect to tenant and resident health and safety. These requirements have resulted in the Association incurring significant costs to ensure complaince with the Scottish Government's requirements.
To ensure that rents are as affordable as possible, the Association applied a rent increase that was significantly below the lowset rate of inflation (CPIH) for each of the last two years. The rent increase of 5.1% applied during April 2022 / 2023 and 4.9% applied during 2023 / 2024 compare favourable with the CPIH rate of 7.8% for both April 2022 and April 2023.
In order to maintain current levels of service provision, and ensure ongoing planned maintenance and investment in properties, the Association considers it necessary to apply a rent increase that is at least in line with inflation. The current rates of inflation are 4.6% (CPI), 4.7% (CPIH) and 6.1% (RPI).
The Association therefore seeks tenant feedback in relation to the following options: 4.6% (CPI), 5.0% and 6.1% (RPI).
What should you do next?
You are invited to consider the information provided in the attached information booklet and the rent increase options detailed within our online survey.
You can complete the online survey by using the following link: https:www.surveymonkey.co.uk/r/G2TZKJP
The Association would be grateful if you could complete the survey by 4:00 pm on Wednesday 13 December 2023.